Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $5,920,000, and the practical level of activity is 370,000 machine hours. During the year, Craig used 377,000 machine hours and incurred actual overhead costs of $5,961,000. Craig also had the following balances of applied overhead in its accounts: Work-in-process inventory $ 587,600 Finished goods inventory 531,100 Cost of goods sold 1,706,300